June 13, 2025
The GIST Meta makes major investment in Scale AI, takes in CEO 
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Scale AI announced a major new investment by Meta late Thursday that values the startup at more than $29 billion and puts its founder to work for the tech titan.
Company founder and chief executive Alexandr Wang will join Meta to help with the tech giant's own artificial intelligence efforts as part of the deal, according to the startup.
Meta was reportedly pouring more than $10 billion into San Francisco-based Scale AI, and acquires its 28-year-old CEO amid fierce competition in the AI race with rivals such as OpenAI, Google and Microsoft.
"Meta has finalized our strategic partnership and investment in Scale AI," a Meta spokesperson said in response to an AFP inquiry.
"As part of this, we will deepen the work we do together producing data for AI models and Alexandr Wang will join Meta to work on our superintelligence efforts."
Meta promised more details about the move in coming weeks.
Scale AI works with business, governments and labs to exploit the benefits of artificial intelligence, according to the startup.
"Meta's investment recognizes Scale's accomplishments to date and reaffirms that our path forward—like that of AI—is limitless," Wang said in a release.
"Scale bridges the gap between human values and technology to help our customers realize AI's full potential."
Since Wang founded Scale AI in 2016, it has grown to more than 1,500 people, he wrote in a post on X.
He said a few other employees, whom he referred to as "Scaliens," will go with him to work on Meta's AI initiative.
Wang described his departure as "bittersweet," adding he will remain a member of the Scale AI board of directors.
Military AI
Along with work that includes AI data, agents, and optimizing systems, Scale AI late last year announced an artificial intelligence model built on Meta's Llama 3 model that is customized for US national security missions including planning military or intelligence operations and understanding adversary vulnerabilities.
Listed capabilities of "Defense Llama" include assessing scenarios and answering tactical questions such as how enemies might attack and how to effectively counter, according to Scale AI.
"Scale AI is committed to ongoing collaboration with the defense community to ensure Defense Llama remains a trusted and effective asset for US military and intelligence operations," Wang said at the time.
Scale AI will use the infusion of capital to accelerate innovation and strengthen partnerships, along with distributing proceeds to equity holders, according to the startup.
Meta will hold a minority stake in Scale AI after the investment deal closes, but an exact figure was not revealed.
Tech industry veteran and investor Jason Droege, a co-founder of Uber Eats food delivery platform, will take over as chief of Scale AI, according to the company.
"Scale has led the charge in accelerating AI development," Droege said in a release.
"We have built the strongest foundation to tackle AI's data challenges and push the boundaries of what's possible."
Meta chief Mark Zuckerberg recently touted his tech firm's generative artificial intelligence (Gen AI) assistant, telling shareholders it is used by a billion people each month across its platforms.
© 2025 AFP
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